Thursday, February 24, 2011

NEXUS, The Most Important Word In Economics

Nexus, from the Latin nectere, to bind. Came into the English as annex or connect (to join with or link to).
In economics, we used the principle, if not the word, when we developed the system of Capitalism.  Capitalism borrowed heavily from the human instinct to compete.  Amerinds developed a form of basketball; Orientals developed board games.  We all love to compete.  Capitalism links effort and reward.  In its application, effort is rewarded and extra effort receives extra reward.
The other guys (Communists, Socialists) have a different theory.  Where Capitalism likes to manage and grow businesses that harness and discipline Effort & Reward,  Leftists have a need to CONTROL PEOPLE.  You may have noticed that our Executive builds fines and penalties into their new programs.  Talk about control, the White House is developing a system of feeding our young; taxing and penalizing those who buy the wrong food.  They are even developing a program to tell you how and when to breast feed!  Isn’t this an area where we should say, “Hands off!”
The problem of the day which should cause us to focus on the theory of effort and reward is shaping up in Wisconsin.  What is billed as a labor dispute between Management (the State government) and Labor (public employee unions) is in effect the beginning of the death struggle between Capitalism and Communism.
Having given up on winning by revolution, the left has, for some time been building an army capable of taking control in a relatively peaceable manner.  The plan goes something like this:
1.      Create a permanent underclass where government handouts eliminate any need to rely on effort and reward.  Cradle to grave welfare programs have created cradle to grave indolence.  We are now in the 3rd or 4th generation of Great Society beneficiaries who have no memory or conception of working for a salary.  A nice, reliable voting block.
2.      Next, they hire more people to oversee the welfare programs that keep beneficiaries “on the plantation”.  We now need more and more bureaucrats at all levels who create no product but who do control the underclass.
3.      Continue to develop more and larger government programs, with unionized employees to recruit more and more beneficiaries.  Of course, all of the beneficiaries and all of the bureaucrats have a vested interest in the re-election of the leftists who created their own little Animal Farm.
As you can see, the left will attain critical mass which simply means the point at which the underclass and the bureaucrats who manage them plus many well-meaning sympathizers will become a majority voting bloc in our Democracy and they can then take control of the government in an honest election.
The Wisconsin State government is fighting an early, but truly important, skirmish for us.  They deserve the support of all who value Democracy.

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